Funding models within the music industry can be confusing at the best of times. From subscription service payouts to NFTs, it’s clear the world has moved on from the days when artists could make a living through CD sales.
Currently, musicians can hope to earn just $0.0033 per song streamed on Spotify, allowing only a small percentage of artists to make a decent living through the site. Fortunately, the digital world is full of solutions to such complex problems.
Crowdfunding, for example, has been around for several years now and has helped many inspiring young artists launch successful careers. The premise is simple – fans and friends can donate as little or as much money as they would like towards a new project via the musician’s crowdfunding page. Depending on how much they give, the artist may reward them with special treats and personalized offers.
As amazing as this sounds, there are a few myths that continue to circulate about crowdfunding. If you’re hoping to set up your own campaign on a site such as Kickstarter or Patreon, make sure to separate fact from fiction beforehand.
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Myth #1: You’re going to become instantly rich
While there are a few inspiring examples of young artists achieving viral fame via crowdfunding, such stories are vanishingly rare. In 2020, the average amount raised across all crowdfunding campaigns was a respectable yet modest $824. Admittedly, this figure includes unsuccessful campaigns. If you look at successful campaigns alone, this figure rises to an impressive $28,656.
However, this disparity demonstrates how much work successful campaigns involve. Before embarking on your crowdfunding mission, think carefully about how you’re going to convince people to part with their hard-earned money. Do you have enough friends, social media followers, and professional contacts to spread the word about your music? If not, you may need to work on your brand image before launching a crowdfunding campaign.
Myth #2: A large number of social media followers will produce instant success
Social media has an increasingly vital role to play in building audiences and promoting new music. However, relying solely on the size of your Twitter or Facebook following is unlikely to reap results.
Funders want to feel invested in your project on an emotional or personal level. For some musicians, this could mean relying heavily on loyal family members and friends. If you don’t have such resources, however, you must focus on advertising yourself effectively. You could, for example, promote your campaign via email newsletters, paid ads, or razor-sharp search engine optimization (SEO). In other words, you must be proactive and committed to singing your own praises for the duration of the campaign.
Myth #3: Funders want physical rewards such as cassettes and signed posters
In a world obsessed with decluttering and minimalism, people don’t want physical rewards. Instead, send experiential gifts such as a personalized email or an invitation to a fancy dinner at your home. Just remember to reserve the more time-consuming prizes for top-tier funders.
Myth #4: You can run a successful campaign purely via digital channels
Unfortunately, successful crowdfunding usually requires you to leave the house or pick up the phone. Rather than limiting yourself to social media promotions, get in touch with everyone listed in your address book or get out on the street and convince people of your talents. People are more likely to part with their cash if they have met and interacted with a crowdfunder personally.
Myth #5: Kickstarter is the best site for crowdfunding campaigns
Thanks to its user-friendly interface and worldwide prominence, many musicians are tricked into believing that Kickstarter is the only site for them. Unfortunately, a random site user is supremely unlikely to stumble upon your project and donate a decent sum of money.
It is also worth noting that you will not receive a single dime on Kickstarter if you fail to reach your project goal. As such, it may be a better idea to use a site with a different funding model such as IndieGoGo.
Myth # 6: High-profile endorsements will guarantee success
Sure, receiving an endorsement from a well-known name in the industry is sure to propel your project forward. However, it won’t be enough if you fail to put the work in elsewhere. Rather than wasting time and money seeking endorsements, focus on honing your craft and promoting your best attributes.
The bottom line: Prepare to work!
Crowdfunding represents a precious tool for musicians in a tough industry. However, it isn’t magic. To ensure your campaign succeeds, you need to focus on marketing yourself and proving your exceptional talent.